Page 15 - Stone Real Estate - Home Buying Guide

Home Buying Guide
Talk with
a a Lender
The The next step you’ll want to to take is to to speak with
with
a a a a a a a a a a a a a lender lender The The lender lender can be your bank or or a a a a a a a a a a a a mortgage broker If you you you don’t already have a a a a a a a a a a a a relationship with
with
someone ask around Anyone who has has purchased a a a a a a a home or refinanced might be a a a a a a a good source of information for for you you It’s important to get a a a a a feel right up front about how much home you you can qualify to purchase When you you you meet with
with
the lender be prepared to bring all your information with
with
you you you You will need your pay stubs W2s bank account statements and the last 2 2 years tax returns to verify income You also need to disclose your your your debt The lender will run your your your credit and use your your your FICO scores as as well as as the the debt debt listed on the the report to to determine your debt-to-income ratio Typically you you will be able to to borrow up to to 31% of your gross monthly income with
no more than a a a a a a a a total monthly debt of about 36% these are estimates and your lender can help you you further with
this It’s important that you you disclose all your debt even if it it doesn’t seem to be on your your credit report You lender is is your your advocate but the last thing thing you you you want is is for something unexpected to pop up at the the the last minute and and lose you the the the loan and and the the the home There are some important things to to to avoid while you’re trying to to to get a a a a a mortgage too:
• Don’t apply for any new credit credit such as credit credit cards or or car car loans
• Don’t pay off a a a a a credit card balance
• Don’t close any credit cards • Do not max out a a a credit card • Do not pay off off any collections or old charge offs
• Do not change jobs
While some of these things seem counter-intuitive credit is a a a a touchy animal and even doing things that seem “good” could actually lower your score and cost you you a a a a a a loan 15